In focus: National intangible capital NIC

Do you need to know how much national intangible capital NIC impact your national economy, welfare and society? Do you need to know what national intangibles are? In depth? Then: national intangible capital NIC 2016 database is the place to look into.

Financial analysis for professionals

Do you need to know how much GDP is produced via intangibles in your country or which intangible drivers are most cost effective? Then: national intangible capital NIC 2016 database is the place to look into.

Drivers of the economy

Participate: Order NIC 2016 Country report

We invite you to participate in prototyping a new service of NIC Country Reports. You have opportunity to order your country’s NIC analyses that is based on the scientifically solid methods developed by an international research group. Give NIC colours to your country map!

Tools to understand

Do you need tools to analyse national intangible NIC and compare performance? Foresee change? Find NIC strenghts and weaknesses, opportunities or threats? In detail by single NIC indicator? Then: you need the national intangible capital NIC 2016 database.

Up to date with "NIC on the week"

BREAKING, High Lights and on the Nerve: We explore urgent issues, country developments, NIC potentials, Opportunities and threats, Strenghts and weaknesses. And make projections into the future as times changes and news emerge. On the Nerve!

Beyond GDP

Do you need to know which intangible drivers in your country boost innovation (or, for example, employment or export growth) most strongly? Then: you need the national intangible capital NIC 2016 database.

Complexity disclosed

NIC 2016 database binds together the many facetes of national intangible capital into a coherent and intuitive framework. Not only are results unique, they are at times staggering and reveal new potentials for sustainable growth.

Does intangibles matter?

Indeed: Intangibles matter!

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function (ELSS: Edvinsson, Lin, Ståhle P. & Ståhle S.), a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

Story1: Intangibles are a major driver in GDP formation

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

How well is your country utilizing intangibles and potentials hidden in those? Login to see.

Story2: Intangibles boost GDP annual growth, i.e. growing welfare

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

How are your country benefiting intangibles in the recovery process? Login to see.

Story4: There are strong and weak NIC drivers and they vary by country and situation

We are working on a show case for you showing how "strong impact of a driver in USA differ from impact of same driver in China" ...

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

Weak and strong NIC drivers in your country: Are they identified? Login to see.

Story5: Investments in intangibles impact the economy with varying time lags

We are working on a show case for you showing how impacts come fast or slowly and showing that these time lags are, not only driver, but also country specific ...

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

Are fast impacting intangibles in your country pin-pointed? Login to see.

Story6: Some intangible drivers are cost effective in your country, others not

We are working on a show case for you showing how "Expensive in India may be cheap in Germany" and how cost efficiency for same driver vary by country, time and situation ...

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

Which are the most cost effective intangible drivers in your country: Is money spent wisely? Login to see.

Story7: Intangible drivers saturate and turn into pillars and new drivers emerge

We are working on a show case for you showing how some drivers turn into neccessary pillars of the knowledge economy sustaining, but not boosting, the economy while new drivers emerge, boosting the economy. Decline of NIC impacts may even drive the whole country towards a tipping point ...

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

How well are emerging new drivers identified in your country? Is there a risk for a tipping point? Login to see.

Story8: Intangible drivers impact a large number of general economic drivers such as employment, development of export etc.

We are working on a show case for you showing how different NIC drivers impact GDP growth, employment, domestic spending and government debt formation (among others) with varying time lags and how this impact is country specific and situational ...

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

What are the full impacts of NIC drivers, intangibles, in your country? Login to see.

Story9: National intangible capital NIC as driver of good national policies and global strategies

We are working on a show case for you showing how all these stories put together can be used to outline action plans and good policies for your country and its future development ...

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

Want to look closer at data that really matters for your country and its future development? Login to see.

We are working on more "Head lines" show casing importance and value of NIC

We are working on a show case for you ...

National intangible capital (NIC) explains major parts of world GDP growth and GDP formation.

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function, a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

Indeed: Intangibles matter! And it matters even more to know exactly how they impact our economy.

Data tools and views helping you analyse and understand NIC data

Analysis tools and visualizations make use of geo-, bar-, trend-, radar- and scatterplot- charts together with tables, lists, heath- and tree- maps.

Analysis views and templates combine these to give you informative and effective views analysing the data and making it easy for you to spot trends, strengths, weaknesses, opportunities and threats in the development of your country's effective use and build-up of intangible capital resources and potential.

We mainly use Tableau software to do the hard work, but also other software tools are used.>

Geo Map / charts

Select year and variable to compare for all or just some countries in database.

Color scales indicates value of variable for different countries and when hovering over a country details are shown in a popup window.>

Maps are a familiar way to grasp the whole picture

Working with maps you at the same time get the feel, wether the country is close to you, close to Europe or a country far away. Perhaps the country is a country you should study in more detail. And how will changes affect the neighbouring region, other countries of interest?

Bar charts

Select year(s) and variable(s) to compare for one or several countries in database.

Bar height indicates value of variable and when hovering over a bar details are shown in a popup window.>

Bar charts helps more exact analysis / comparisons

1) You can easily select countries or varibles to compare at specific times. Comarisons may reveal features not so obvious, when using other tools.
For example: Compare performance for Sweden 2014 from different perspectives: Index values, impacts in GDP and cost / investment efficiency of drivers.

Click to enlarge
When focusing on indexes it looks as if human and process capital (NHC and NPC) would under perform for Sweden when compared to Scandinavia in general.

2) This is also confirmed, when we look at Sweden 2014 from the impact point of view: Human and process capital is under performing.

3) Focusing on investment and cost efficiency Sweden discloses its superiority: Sweden is by far the most effective Nordic country in utilizing its national intangible resources, its potential.

Click to enlarge
Find out more and find out what the situation and developments are in 2016 by loging into NIC 2016 database.
And intrestingly, did you notice? :: When focusing on impacts in GDP and efficiency, 2014, EU28 outperform the Euro zone! One (small) exception: NRC impacts, e.g. impacts of renewal capital / innovativness and R&D 2014.

Trend / Line charts

Select desired time span and variable(s) to compare for one or several countries in database.

Line height indicates value of variable for given time span and when hovering over a line details are shown in a popup window.>

Growing / declining trends can easily be seen and also abnormal anomalies / crisis behavior.

Trend charts helps you to spot and compare changes over time

1) Trend lines are useful when you want to look into change over time. Comarisons may reveal features not so obvious, when using other tools.
For example: Look into how NIC impact in world GDP formation developed during and after the financial crisis.

Click to enlarge
Taking the world in perspective it seems that the crisis had only minor causations disturbing the overall trend, contnuing growth.
In fact: Looking closer positive impacts can be noted for human, process and renewwal capital and the only big looser was market capita.
In other words: The crisis de facto launced a positive global reaction towards utilizing intangibles as driver.

2) This positive reaction can also be seen when focusing on Sweden:

Click to enlarge
After a short dip 2008-2009 process and renewal capital, not only recover, but perform with a better growth rate. At the same time human and market capital are back on original growth track.
However ... .. .

3) Not every country:

Click to enlarge
Crisis 2008-2009 hits Finland and only renewal capital shows a positive response like for Sweden.
Looking at "before and after" all the other drivers, human, market and process capital, flatten to zero growth. As a consequence impacts of overall NIC impacts in GDP formation stagnates as also renewal capital impacts (temporarily) ceases to grow.

Click to enlarge
Denmark turns crisis into opportunity and moves to new levels of NIC impact and growth. And, even if the major leap has been made, the new growth trends for human, process and renewal capital are better than befor the crisis.
Where do we stand today? Find out more about world development today by loging into NIC 2016 database..

Scatter / Bubble chart

Select year(s) and variable groups x and y (and z) to plot for one or several countries in database.

X-horisontal axis, Y-vertical axis and Z size

Position x-y and size z of marker indicates value of variable x-y-z for one or selected countries and when hovering over a marker/bubble details are shown in a popup window.>

National intangible capital, NIC, indicators and groups

National Intangible Capital NIC consists of four basic dimensions according to the model by Edvinsson & Malone (1997). This model has been further developed, now consisting 48 different indicators representing the four main categories.

Regions and economic groups

Additional: World, developed countries and developing countries in five (5) categories by level of GDP/capita and/or NIC advancement.

Short background and research team

Intangibles disclose new perspectives to explain hidden economic drivers. By introducing the ELSS production function (ELSS: Edvinsson, Lin, Ståhle P. & Ståhle S.), a new theoretically and computationally justified method we have been able to catch and disclose those impacts. By augmenting the Cobb-Douglas production function with a wide range of NIC indicators, we have managed to uncover 77% of hidden economic drivers (TFP, total factor productivity) in developed economies and to calculate the effect of intangible capital on GDP and growth.

The results of our analysis show that intangible capital accounts for some 45% of world GDP. The figure for the United States is 70.3% and for the European Union 51.6 %. The Nordic countries stand out with a higher figure at 64.7%, with NIC contributing to 72.5% of GDP in Sweden, 69.7% in Finland and 67.6% in Denmark (2014).

"ELSS" refers to Edvinsson, Lin, Ståhle P. & Ståhle S.: Leif Edvinsson (Edvinsson & Malone, 1997) is creator of the IC model at corporate level, and Carol Lin is creator of the NIC model and the initial database of 40 countries (statistics mainly based on IMD Country Competitiveness data), which was further developed by Carol Lin, Pirjo Ståhle and Sten Ståhle.

The main framework for measuring the impact of national intellectual capital NIC on GDP formation and GDP annual growth was developed within the SAIKA project: Intellectual Capital as a Driver of National Economy, Finland Futures Research Centre, University of Turku. The project was funded by the Finnish Funding Agency for Technology and Innovation TEKES during 2010-2011 / 2012-2013. The head of the project was Professor Pirjo Ståhle and the head researcher was Chief analyst Sten Ståhle.

Leif Edvinsson

Since 2000 Leif Edvinsson has been the world’s first Professor, adjunct at Lund University on Intellectual Capital, and a leading edge on Intellectual Capital, IC. He was the worlds first corporate director of Intellectual Capital at Skandia in Stockholm, Sweden. He has been a key contributor to the theory of IC and oversaw the creation of the worlds first corporate Intellectual Capital Annual Report. Leif has been recognised with several awards for his pioneering work on IC. In 1996 the American Productivity and Quality Centre (USA) and Business Intelligence (UK) recognized him for the pioneering work on IC, and in 1999 Leif was noted the Most Admired Knowledge Award on Knowledge Leadership. In 2004 Leif was awarded The KEN Practitioner of the Year from Entovation International, where he also is an E 100.In 1998 Leif received the prestigious Brain Trust “Brain of the Year” award (UK), and in 2006 he was listed in a book by London Business Press, as one of The 50 Most influential Thinkers in the World. Leif is a cofounder and Chairman of The New Club of Paris, focused on the Knowledge Economy initiatives, and an associate member of The Club of Rome. In January 2006, he was also appointed professor adj. at The Hong Kong Polytechnic University.

Carol Yeh-Yun Lin

Carol Yeh-Yun Lin is a distinguished professor and researcher in Intellectual Capital, IC, Department of Business Administration at National Chengchi University, Taipei, Taiwan; Taiwan Intellectual Capital Research Center (TICRC). Carol has achived several awards; the most recent is the Outstanding Teaching Award (2012), Outstanding Professor Award (2011), Taiwan Ministry of Education award; and Outstanding National Science Council Researcher (2011 & 2012). Carol is also a board member of the New Club of Paris.

Pirjo Ståhle

Pirjo Ståhle is visiting professor at the Centre of Excellence in Laser Scanning Research, Aalto University School of Engineering. Her main areas of expertise are knowledge management, innovations and the measurement of intellectual capital. Pirjo Ståhle moved to her current position from the University of Turku, Finland Futures Research Centre, where she served as professor from 2004 to 2013. At the Turku Futures Research Centre she was in charge of research projects concerned with the economic impacts of intellectual capital in 48 countries.

Pirjo Ståhle is often mentioned as a pioneer of Finnish knowledge management. She was the country's first-ever Chief Knowledge Officer (Sonera 1998-2001), first Professor of Knowledge Management (Lappeenranta University of Technology 2001-2007), and her book on Knowledge Management was the first Finnish book on this subject.

Sten Ståhle

Chief analyst at Business Information Analysis and Consulting, bimac, Helsinki, Finland. He is a prominent researcher studying and modeling the impact of intangible capital on economic performance and competitiveness. Main focus areas are the measuring of intangible capital efficiency and determining the underlying inter dependencies of various intellectual capital components. Since mid 90’s he has been coworking in several publications (e.g. Intangibles and national economic wealth – a new perspective on how they are linked (2015), Towards measures of national intellectual capital: an analysis of the CHS model, 2012, Value Added Intellectual Coefficient (VAIC): A critical analysis (Outstanding paper published in the Journal of Intellectual Capital in 2008), 2011, National Intellectual Capital as an Economic Driver: Perspectives on Identification and Measurement, 2008) and in several projects (e.g. Educational Intelligence System EIS, 2006). Currently Sten is continuing his work within the ELSS project studying and modeling impacts of national intangible capital on economic growth and socio-economic change.

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Quiz of the day

Question :

In the middle of the financial crisis 2008-2009 impacts of human capital in GDP grow by 6.65 % in the world and in EU28 by 9.27 %. But: There where the loosers, e.g countries which did not use their human capital in the crisis and recovery. Which country was worst performing 2008-2009 when it comes to using its human capital potential?